The National Election Commission to Probe Election Fund

The Nation Election Commission (NEC) began on the 14th its probe into election fund of political parties and candidates in the June 13 local elections.

The NEC is planning to conduct a documentary examination for ten days based on the financial reports submitted to the commission. In the examination, the commission is expected to focus on whether parties and candidates appropriately attached documentary evidence to the income-outgo report, and whether the report reflects spending cases exposed by the commission during the election period.

In this process, the NEC will compare bank account statement and documentary evidence of expenses such as receipts, contract documents, and transaction statements in details. If it discovers the suspicions over contraction, alteration or ommission, the commission will carry out a spot investigation.

The NEC is expected to allow the public to see the financial reports for three months starting from the 20th, when the commission ends the documentary examination.

It means that voters and rival candidates can also make an objection to the financial transparency of, and demand a vindication from their representatives and rivals.

The NEC will also carry out spot investigation into receipts and transaction statements attached to financial reports by Sep. 10. In the spot investigation, the NEC will probe whether restaurants or advertising companies issued false receipts in a bid to scale down money used in the campaign. The commission is expected to ask cooperation from the National Tax Serve. That is because the NEC does not have a right to trace bank accounts and enough experience to inspect financial ledgers.

Kim Ho-yeol, senior official in the NEC said, "Since the prescription period of the election law violation is six months from the election-day, the commission will complete the investigation by Sep, 10, and give time for the prosecution to take over violation cases."

After the investigation, the NEC will form consultation bodies to impose sanctions on governors, mayors and local councilors, who violated the election law. The NEC is also planning to indict those who spent campaign fund by 0.5% or more of the limited amount, intentionally omitted or falsely reported campaign fund.

The NEC also said that it would grant up to 10 million won in bounty when people report the election law violation of candidates, and guarantee the informants` safety.

Tel. 1588-3939

Jeong-Hun Kim jnghn@donga.com